U.S. Bancorp is splitting its payment services business in half; Flagstar Financial continues to fill out its leadership with an eye toward tech and risk management; First Horizon authorized an additional $350 million in stock buybacks for its $1 billion share repurchase plan; and more in this week's banking news roundup.

HomeStreet and FirstSun are working to devise a new formula after the Texas Department of Banking and the Federal Reserve declined to approve their merger application.

The buyer said it would pay $127 million in stock to acquire William Penn Bancorp in suburban Bristol, Pennsylvania.

Former Treasury Secretary Steven Mnuchin and his investment firm Liberty Strategic Capital are seeking to more than double his indirect ownership stake of Flagstar Financial — formerly New York Community Bank — to 22.9%, according to filings obtained by American Banker.

The Honolulu-based banks were reportedly in advanced discussions. But the would-be buyer said "the parties are no longer currently engaged in discussions."

This month's roundup includes items on TD Bank Group's asset cap and $3 billion in money-laundering fines, the Consumer Financial Protection Bureau's final rule on open banking and more.

The $24 billion-asset bank fully integrated its acquisition of Lakeland Bancorp during the third quarter, and that milestone has positioned the bank for growth, executives said.

When TD Bank's $13 billion acquisition fell through, First Horizon was forced to quickly come up with a plan. Here's how the bank's culture of sharing ideas and inclusion helped.

Bank executives and industry advocates welcomed the Federal Reserve's interest rate reduction but warned that careful planning for future drops is necessary to avoid creating market turmoil.

The Honolulu-based seller, which plans a Nov. 6 shareholder vote on the deal, posted a third-quarter loss and reiterated its commitment to the Hope agreement. But an offer with a higher price from an investor group is also on the table.

The only major U.S. lender with a significant presence in Lebanon, Citigroup has moved a handful of its staff there to Turkey, according to a person familiar with the matter.

The Bank of New York Mellon and Japan's Mizuho Bank entered an agreement to grant their corporate clients access to the other's international trade network; New York-based lender Kapitus acquired Ten Oaks Commercial Capital; North Carolina's First Carolina Bank agreed to acquire Pennsylvania's BM Technologies; and more in this week's banking news roundup.

The Young Women's Leadership Award grants four $5,000 college scholarships to New York City high school seniors who are first-generation college students.

McQuown is credited with kicking off a financial revolution with the creation of the first index fund.

New York Attorney General Letitia James asked a state court for permission to issue subpoenas to Capital One as part of an ongoing antitrust probe by the state,

The American Banker award ceremony, which celebrated 15 women honorees 40 years or younger nominated for having C-suite potential by an executive at their institutions, took place at The Glasshouse in New York City.

Y-12 Federal Credit Union in Oak Ridge, Tennessee, said it would acquire First State Bank of the Southeast in Middlesboro, Kentucky. It was the 19th such deal announced this year.

Recently polled banking professionals held that Vice President Kamala Harris is the likely front-runner for the White House, but former President Donald Trump would be better for the industry.

Other acquisitive executives, however, say that interest rate cuts have hastened already-active deal discussions, as more banks seek scale and business line diversity.

The lender will combine its global commercial and institutional banking operations and is creating a new international wealth and premier banking business. HSBC also named Pam Kaur as its first female CFO.